MEMORIALIZING THE INTENT OF THE 137TH GENERAL ASSEMBLY IN THE MATTER RELATING TO THE FISCAL YEAR 1995 $70-MILLION DOLLAR BUDGET SURPLUS.

WHEREAS, State funds available for appropriation are expected to exceed the expenses associated with the 1995 proposed budget and Grants-In-Aid Bill by $70-million dollars; and

WHEREAS, the intent of this General Assembly is to use the $70-million surplus in a judicious manner which provides the greatest benefit for the taxpayers of Delaware; and

WHEREAS, legislative leaders, on behalf of their respective caucuses and in consultation with the Governor's Office, have agreed that a judicious use of the surplus would include a plan for dedicating $20-million to reduce the State's bonded indebtedness; and

WHEREAS, agreement was also reached on a plan to allocate $21-million of the surplus to the Bond Bill Committee where it will be combined with the $9.5-million appropriation recommended by the Governor, with the expectation that a substantial portion of the total sum of $30-million be used to fund needed school construction and other pending construction projects, with another $5-million dollars being dedicated to the Strategic Fund where It will be combined with the $5-million already recommended by the Governor in January to form a total sum of $10-million which will be used to spur State economic development and job creation efforts; and

WHEREAS, agreement was also reached on the need to utilize the remaining $20-million dollars for tax reduction in a way that best serves the people of Delaware; and

WHEREAS, the tax relief proposal includes plans to reduce the Utility Tax burden by $2-million and plans to remove the last six months of the Gross Receipts Tax Surcharge leaving $4.3-million dollars in the private economy; and

WHEREAS, the tax relief proposal reflects the intent of this General Assembly to return $13-million dollars to taxpayers as soon as practicable, but not later than the end of the 1995 fiscal year, after careful consideration has been given to the potential financial burdens facing the State, such as the possible closing of the G.M. plant and its related revenue loss, and/or the pending decision by the United States Congress in the matter regarding Interstate Banking and its potential negative financial impact and the need to develop prudent and timely financial contingency plans should these factors come to pass; and

WHEREAS, the tax relief proposal also reflects the intent of this General Assembly to avail itself of any opportunities to enhance the amount of individual tax relief, which could come about as the result of a favorable conclusion to the abandoned property issue being debated in Congress, or as the result of improved DEFAC revenue forecasts during the summer and fall; and

WHEREAS, it is our intent to formalize the commitment of this body to use the fiscal year 1995 surplus in the most practical, efficient, and fiscally responsible way, that: reduces Delaware's bonded indebtedness; finances needed public construction projects; funds economic development and job creation projects; and reduces the tax burden and, in so doing, best serves the people of Delaware.

NOW, THEREFORE:

BE IT RESOLVED by the House of Representatives of the 137TH General Assembly of the State of Delaware, the Senate concurring therein, that our expressed intent in passing this Resolution is to formalize the longstanding commitment of this body to use the $70-million dollar 1995 surplus in the most practical, efficient and fiscally responsible way that benefits the people and quality of life of Delaware.

BE IT FURTHER RESOLVED that the plan described herein, to: reduce Delaware's bonded indebtedness; finance needed public construction projects; fund economic development and job creation projects, develop contingency plans for potential financial burdens; and reduce the tax burden, represents the informed agreement and intent of the 137th General Assembly to best serve the people of Delaware.